HINDUSTAN UNILEVER LIMITED

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION (General)
2009-12

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Table of Contents:-

Student Declaration………………………………………………(i)
Certificate from Guide……………………..…………………… (ii)
Acknowledgement………………………..…………………….. (iii)
Executive Summary…………………..……………………….... (iv)
1. Chapter-1-Overview of textile industries
(a) Industrial Structure……………………………………………..…
(b) Major Players.…………..…………………………………………

2. Chapter-2-Company Profile
(a) About Raymond Group……………………….……………
(b) Group Companies of Raymond…………..……...…………
(c) Joint Ventures……………………………………...……….
(d) Different Brands…..………………………………...……...
(e) Manufacturing Process………………..……………………
(f) Designing Department..……………………………………...
(g) Research & Development.…………………………………..
(h) Financial Report………….…………………………………
3. Chaper-3 OBJECTIVES OF THE STUDY
4 .Research Methodology

5. Chapter-Findings and Analysis

(a) SWOT Analysis.…………………………………………… 58
(b) Findings……………………………………………………..60
6 Chapter-Conclusions…………………………………………….62
7. RECOMMENDATION AND SUGGESTIONS

BIBLOGRAPHY ……………...………………………………………

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 STUDENT UNDERTAKING

This is to certify that I have completed the Project titled HINDUSTAN UNILEVER

LIMITED in under the guidance of Ms. Sana Sharma in partial fulfillment of the

requirement for the award of degree of Bachelor of Business Administration at Delhi.

This is an original piece of work & I have not submitted it earlier elsewhere.

Name of the Student

BBA(Gen.) 3RD SEM

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 CERTIFICATE

This is to certify that the project titled “HINDUSTAN UNILEVER LIMITED” is an

academic work done by sameer submitted in the partial fulfillment of the requirement for

the award of the degree of Bachelor Of Business Administration from Institute of

Management Studies, Delhi, under my guidance & direction. To the best of my

knowledge and belief the data & information presented by him/her in the project has not

been

submitted earlier.

Ms. Sana Sharma

(FACULTY GUIDE)

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 ACKNOWLEDGEMENT

My project would be incomplete if at this juncture, I did not

Acknowledge those who steered my project work in the right
direction.
First of all I would like to thanks Ms. Sana Sharma (faculty,
MAIMS) as she proved to be constant source of inspiration and
provided timely support at crucial stages of this project work
despite the time and work constraints.
The feeling of gratitude when expressed in words is only a fraction
of acknowledgement. I feel overwhelmed to express my gratitude to
all those who extended their consistent support, guidance and
encouragement to complete this task.

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HLL is now Hindustan Unilever Ltd
India’s largest FMCG Company, HLL has unveiled a
new corporate identity represented by a new logo and
also a new name Hindustan Unilever Limited (HUL).

The new name reflects the company’s heritage as well as

the synergies it has with its global parent Unilever Plc.
To reflect its India-specific focus, the company has chosen to retain ‘Hindustan’ as the
first word in the name.

The new identity positions the company as working on a local as well as a global
platform.

HUL also unveiled a new logo consisting of 25 different icons which symbolizes the
company’s brands, organization, values and its core idea of Vitality.

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Over 100 years' link with India

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight
soap bars, embossed with the words "Made in England by Lever Brothers". With it,
began an era of marketing branded Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited
(1935). These three companies merged to form HUL in November 1956; HUL offered
10% of its equity to the Indian public, being the first among the foreign subsidiaries to do
so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is
distributed among about 380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the
company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India
Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an
international acquisition. The erstwhile Lipton's links with India were forged in 1898.
Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was
incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold
through an international acquisition of Chesebrough Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the stimulus of economic
growth. The growth process has been accompanied by judicious diversification, always in
line with Indian opinions and aspirations.

The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in
HUL's and the Group's growth curve. Removal of the regulatory framework allowed the
company to explore every single product and opportunity segment, without any
constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the

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most visible and talked about events of India's corporate history, the erstwhile Tata Oil
Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995,
HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture,
Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate
products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to
HUL and divested its 50% stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in
1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary
Pads. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its
factory represents the largest manufacturing investment in the Himalayan kingdom. The
NLL factory manufactures HUL's products like Soaps, Detergents and Personal Products
both for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the
Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General
Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan
business from the UB Group and the Dollops Icecream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation
companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke
Bond India and Lipton India merged to form Brooke Bond Lipton India Limited
(BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages
business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the
end of the year, the company entered into a strategic alliance with the Kwality Icecream
Group families and in 1995 the Milkfood 100% Icecream marketing and distribution
rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in
1998. The two companies had significant overlaps in Personal Products, Speciality
Chemicals and Exports businesses, besides a common distribution system since 1993 for
Personal Products. The two also had a common management pool and a technology base.
The amalgamation was done to ensure for the Group, benefits from scale economies both
in domestic and export markets and enable it to fund investments required for
aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent equity in
Modern Foods to HUL, thereby beginning the divestment of government equity in public
sector undertakings (PSU) to private sector

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Chronology

OVER 100 YEARS' LINK WITH INDIA

YEAR MILESTONES
1888 Sunlight soap introduced in India.
1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi.
1902 Pears soap introduced in India.
1903 Brooke Bond Red Label tea launched.
1905 Lux flakes introduced.
1913 Vim scouring powder introduced.
1914 Vinolia soap launched in India.
Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure Creameries,
1918
and Hartogs.
1922 Rinso soap powder introduced.
1924 Gibbs dental preparations launched.
1925 Lever Brothers gets full control of North West Soap Company.
1926 Hartogs registers Dalda Trademark.
1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.
1931 Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought.
1932 Vanaspati manufacture starts at Sewri.
Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India
1933
Limited incorporated on October 17.
Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden Reach Factory,
1934
Kolkata rented and expanded to produce Lever brands.
1935 United Traders incorporated on May 11 to market Personal Products.
1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.
1939 Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand.
1941 Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force.
Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of
1942
Europeans".
1943 Personal Products manufacture begins in India at Garden Reach Factory.
1944 Reorganisation of the three companies with common management but separate marketing operations.

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1947 Pond's Cold Cream launched.
Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories
1951
bought.
1955 65% of managers are Indians.
1956 Three companies merge to form Hindustan Lever Limited, with 10% Indian equity participation.
1957 Unilever Special Committee approves research activity by Hindustan Lever.
1958 Research Unit starts functioning at Mumbai Factory.
1959 Surf launched.
1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.
1962 Formal Exports Department starts.
1963 Head Office building at Backbay Reclamation, Mumbai, opened.
1964 Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched.
1965 Signal toothpaste launched; Indian shareholding increases to 14%.
Lever's baby food, more new foods introduced; Nickel catalyst production begins; Indian shareholding
1966
increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched.
1967 Hindustan Lever Research Centre, opens in Mumbai.
Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit
1968
commissioned at Andheri; informal price control on soap begins.
1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched
Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan
1971
approved; Clinic shampoo launched.
1973 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.
1974 Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed.
Ten-year modernisation plan for soaps and detergent plants; Jammu project work begins; statutory price
1975
control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched.
1976 Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning.
1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.
1978 Indian shareholding increases to 34%; Fair & Lovely skin cream launched.
1979 Sodium Tripolyphospate plant at Haldia commissioned.
Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes
1980
down to 51%.
1982 Government allows 51% Unilever shareholding.
1984 Foods, Animal Feeds businesses transferred to Lipton.
1986 Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes out; Khamgaon Soaps

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 unit and Yavatmal Personal Products unit start production.
1988 Launch of Lipton Taaza tea.
1990 Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.
1991 Surf Ultra detergent launched.
1992 HLL recognised by Government of India as Star Trading House in Exports.
HLL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from
1993 April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December
1994; Launch of Vim bar; Kissan acquired from the UB Group.
HLL forms Nepal Lever Limited, HLL and US-based Kimberley-Clark Corporation form 50:50 joint venture -
Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products. Factory set up at
1994
Pune in 1995; HLL acquires Kwality and Milkfood 100% brandnames and distribution assets. HLL introduces
Wall's.
HLL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever Ltd.; HLL enters
1995
branded staples business with salt; HLL recognised as Super Star Trading House.
Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke Bond
1996 Lipton India Limited, with HLL, with effect from January 1; HLL introduces branded atta; Surf Excel
launched.
Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centres also come
1997
up.
Group company, Pond's India Ltd., merges with HLL with effect from January 1, 1998. HLL acquires Lakme
1998
brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd.
Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HLL
2000 acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the
Government of India.
2002 HLL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centres.
2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group
2005 Launch of "Pureit" water purifiers

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Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company,
touching
the lives of two out of three Indians with over 20 distinct categories in Home & Personal
Care Products and Foods & Beverages. They endow the company with a scale of
combined volumes of about 4 million tonnes and sales of Rs.10,000 crores.

HUL is also one of the country's largest exporters; it has been recognised as a Golden
Super Star Trading House by the Government of India.

The mission that inspires HUL's over 15,000 employees, including over 1,300 managers,
is to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal
care with brands that help people feel good, look good and get more out of life. It is a
mission HUL shares with its parent company, Unilever, which holds 51.55% of the
equity. The rest of the shareholding is distributed among 380,000 individual shareholders
and financial institutions.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,
Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,
Kwality Wall's – are household names across the country and span many categories -
soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary
products. They are manufactured over 40 factories across India. The operations involve
over 2,000 suppliers and associates. HUL's distribution network, comprising about 4,000
redistribution stockists, covering 6.3 million retail outlets reaching the entire urban
population, and about 250 million rural consumers.

HUL has traditionally been a company, which incorporates latest technology in all its
operations. The Hindustan Unilever Research Centre (HLRC) was set up in 1958, and
now has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centres
in India have over 200 highly qualified scientists and technologists, many with post-
doctoral experience acquired in the US and Europe.

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HUL believes that an organisation's worth is also in the service it renders to the
community. HUL is focusing on health & hygiene education, women empowerment, and
water management. It is also involved in education and rehabilitation of special or
underprivileged children, care for the destitute and HIV-positive, and rural development.
HUL has also responded in case of national calamities / adversities and contributes
through various welfare measures, most recent being the village built by HUL in
earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused
devastation in South India.

In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti,

HUL is creating micro-enterprise opportunities for rural women, thereby improving their
livelihood and the standard of living in rural communities. Shakti also includes health and
hygiene education through the Shakti Vani Programme, and creating access to relevant
information through the iShakti community portal. The program now covers 15 states in
India and has over 31,000 women entrepreneurs in its fold, reaching out to 100,000
villages and directly reaching to 150 million rural consumers. By the end of 2010, Shakti
aims to have 100,000 Shakti entrepreneurs covering 500,000 villages, touching the lives
of over 600 million people.

HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. The
programme endeavours to induce adoption of hygienic practices among rural Indians and
aims to bring down the incidence of diarrhoea. It has already touched 70 million people
in approximately 15000 villages of 8 states. The vision is to make a billion Indians feel
safe and secure.

If Hindustan Unilever straddles the Indian corporate world, it is because of being single-
minded in identifying itself with Indian aspirations and needs in every walk of life.

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Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look good and get
more out of life.

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Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and get more
out of life.

Our deep roots in local cultures and markets around the world give us our strong
relationship with consumers and are the foundation for our future growth. We will bring
our wealth of knowledge and international expertise to the service of local consumers - a
truly multi-local multinational.

Our long-term success requires a total commitment to exceptional standards of

performance and productivity, to working together effectively, and to a willingness to
embrace new ideas and learn continuously.

To succeed also requires, we believe, the highest standards of corporate behaviour

towards everyone we work with, the communities we touch, and the environment on
which we have an impact.

This is our road to sustainable, profitable growth, creating long-term value for our
shareholders, our people, and our business partners.

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Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG)
company. It is present in Home & Personal Care and Foods & Beverages categories.
HUL and Group companies have about 16,000 employees, including 1200 managers.

The fundamental principle determining the organisation structure is to infuse speed and
flexibility in decision-making and implementation, with empowered managers across the
company's nationwide operations. For this, HUL is organised into two self-sufficient
divisions - Home & Personal Care & Foods - supported by certain central functions and
resources to leverage economies of scale wherever relevant.

Board
Divisions
Central functions
Businesses

Board
At the apex is the Board, headed by the Chairman, and comprising 5 whole time
Directors and 5 independent non-executive Directors. The day to day operations are
supervised by the National Management comprising the Vice Chairman, Managing
Director (HPC), Managing Director (Foods) and the Finance Director.

Divisions
Each division is self-sufficient with dedicated resources and assets in sales, marketing,
commercial, and manufacturing. The two divisions are further reorganised into
categories.

Typically, each category and each function - Sales, Commercial, Manufacturing - is

headed by a Vice President. They with their respective Managing Director, comprise that
Division's Management Committee.

For managing sales operations, HUL divides the country into four regions, with regional
branches in Delhi, Kolkata, Chennai and Mumbai. Headed by a Regional Manager, they
comprise Regional Sales Managers and Area Sales Managers, assisted by dedicated field
forces, comprising Sales Officers and Territory Sales Incharges.

In Marketing, each category has a Marketing Manager who heads a team of Brand
Managers dedicated to each or a group of brands.

The commercial team of a Division is responsible for its supply chain management.
There are teams dedicated to sourcing, planning and logistics.

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Each Division has a nationwide manufacturing base, with each factory peopled by teams
of Production, Engineering, Quality Assurance, Commercial and Personnel Managers.

CentralFunctions
HUL's Central Functions are Finance, Human Resources, Technology, Research,
Information Technology, Legal & Secretarial, and Corporate Affairs. Their services are
shared across the company. But, wherever necessary, managerial resources are dedicated
exclusively to a business. For example, each Division now has dedicated HR managers.

HUL believes that while it leverages the scale of a large corporate, it must also retain the
soul of a small company. Its organisation structure, which has and will continue to evolve
with time, is aimed at achieving this knitting.

Businesses
Home & Personal Care
• Personal Wash
• Fabric Wash
• Home Care
• Oral Care
• Skin Care
• Hair Care
• Deodorants & Talcs
• Colour Cosmetics

Foods
• Tea
• Coffee
• Branded Staples
• Culinary Products
• Ice Creams
• Modern Foods ranges

New Ventures
• Hindustan Unilever Network
• Ayush ayurvedic products & services
• Sangam
• Pureit water

Exports
• HPC
• Beverages
• Marine Products
• Rice
• Castor

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Mr.Harish Manwani
Chairman

Mr.Douglas Baillie
CEO and Managing Director

D. Sundaram
Finance & IT Director

Mr. Nitin Paranjpe

Exectuive Director

Mr. Sanjiv Kakkar

Director

A. Narayan
Director

V. Narayanan
Director

D. S. Parekh
Director

C. K. Prahalad
Director

S. Ramadorai
Director

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Introduction

Unilever has earned a reputation for conducting its business with integrity and with
respect for the interests of those our activities can affect. This reputation is an asset, just
as real as our people and brands.

Our first priority is to be a successful business and that means investing for growth and
balancing short-term and long-term interests. It also means caring about our consumers,
employees and shareholders, our business partners and the world in which we live.

To succeed requires the highest standards of behaviour from all of us. The general
principles contained in this Code set out those standards. More detailed guidance tailored
to the needs of different countries and companies will build on these principles as
appropriate, but will not include any standards less rigorous than those contained in this
Code.

We want this Code to be more than a collection of high-sounding statements. It must

have practical value in our day-to-day business and each one of us must follow these
principles in the spirit as well as the letter.

Code of Business Principles

Standard of Conduct
We conduct our operations with honesty, integrity and openness, and with respect for the
human rights and interests of our employees.

We shall similarly respect the legitimate interests of those with whom we have
relationships.

Obeying the Law

Unilever companies and employees are required to comply with the laws and regulations
of the countries in which we operate.

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Employees
Unilever is committed to diversity in a working environment where there is mutual trust
and respect and where everyone feels responsible for the performance and reputation of
our company.
We will recruit, employ and promote employees on the sole basis of the qualifications
and abilities needed for the work to be performed.

We are committed to safe and healthy working conditions for all employees. We will not
use any form of forced, compulsory or child labour.
We are committed to working with employees to develop and enhance each individual's
skills and capabilities.

We respect the dignity of the individual and the right of employees to freedom of
association.

We will maintain good communications with employees through company based

information and consultation procedures.

Consumers
Unilever is committed to providing branded products and services which consistently
offer value in terms of price and quality, and which are safe for their intended use.
Products and services will be accurately and properly labelled, advertised and
communicated.

Shareholders
Unilever will conduct its operations in accordance with internationally accepted
principles of good corporate governance. We will provide timely, regular and reliable
information on our activities, structure, financial situation and performance to all
shareholders.

Business Partners
Unilever is committed to establishing mutually beneficial relations with our suppliers,
customers and business partners.

In our business dealings we expect our partners to adhere to business principles

consistent with our own.

Community Involvement
Unilever strives to be a trusted corporate citizen and, as an integral part of society, to
fulfill our responsibilities to the societies and communities in which we operate.
Public Activities
Unilever companies are encouraged to promote and defend their legitimate business
interests.

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Unilever will co-operate with governments and other organisations, both directly and
through bodies such as trade associations, in the development of proposed legislation and
other regulations which may affect legitimate business interests.

Unilever neither supports political parties nor contributes to the funds of groups whose
activities are calculated to promote party interests.

The Environment
Unilever is committed to making continuous improvements in the management of our
environmental impact and to the longer-term goal of developing a sustainable business.

Unilever will work in partnership with others to promote environmental care, increase
understanding of environmental issues and disseminate good practice.

Innovation
In our scientific innovation to meet consumer needs we will respect the concerns of our
consumers and of society. We will work on the basis of sound science, applying rigorous
standards of product safety.

Competition
Unilever believes in vigorous yet fair competition and supports the development of
appropriate competition laws. Unilever companies and employees will conduct their
operations in accordance with the principles of fair competition and all applicable
regulations.

Business Integrity
Unilever does not give or receive, whether directly or indirectly, bribes or other improper
advantages for business or financial gain. No employee may offer, give or receive any
gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer
of, a bribe must be rejected immediately and reported to management.

Unilever accounting records and supporting documents must accurately describe and
reflect the nature of the underlying transactions. No undisclosed or unrecorded account,
fund or asset will be established or maintained.

Conflicts of Interests
All Unilever employees are expected to avoid personal activities and financial interests
which could conflict with their responsibilities to the company.

Unilever employees must not seek gain for themselves or others through misuse of their
positions.

Compliance – Monitoring – Reporting

Compliance with these principles is an essential element in our business success. The

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Unilever Board is responsible for ensuring these principles are communicated to, and
understood and observed by, all employees.

Day-to-day responsibility is delegated to the senior management of the regions and

operating companies. They are responsible for implementing these principles, if
necessary through more detailed guidance tailored to local needs.

Assurance of compliance is given and monitored each year.

Compliance with the Code is subject to review by the Board supported by the Audit
Committee of the Board and the Corporate Risk Committee.

Any breaches of the Code must be reported in accordance with the procedures specified
by the Joint Secretaries. The Board of Unilever will not criticise management for any loss
of business resulting from adherence to these principles and other mandatory policies and
instructions.

The Board of Unilever expects employees to bring their attention, or to that of senior
management, any breach or suspected breach of these principles.

Provision has been made for employees to be able to report in confidence and no
employee will suffer as a consequence of doing so.

In this Code the expressions 'Unilever' and 'Unilever companies' are used for convenience
and mean the Unilever Group of companies comprising Unilever N.V., Unilever PLC and
their respective subsidiary companies. The Board of Unilever means the Directors of
Unilever N.V. and Unilever PLC.

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Introduction

Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the
daily needs of consumers and industry. In doing so, the Company is committed to exhibit
the highest standards of corporate behaviour towards its consumers, employees, the
societies and the world in which we live.

The company recognises its joint responsibility with the Government and the Public to
protect environment and is committed to regulate all its activities so as to follow best
practicable means for minimising adverse environmental impact arising out of its
operations.
The company is committed to making its products environmentally acceptable, on a
scientifically established basis, while fulfilling consumers' requirements for excellent
quality, performance and safety.
The aim of the Policy is to do all that is reasonably practicable to prevent or minimise,
encompassing all available knowledge and information, the risk of an adverse
environmental impact arising from processing of the product, its use or foreseeable
misuse.
This Policy document reflects the continuing commitment of the Board for sound
Environment Management of its operations. The Policy applies to development of a
process, product and services, from research to full-scale operation. It is applicable to all
company operations covering its plantations, manufacturing, sales and distribution,
research & innovation centres and offices. This document defines the aims and scope of
the Policy as well as responsibilities for the achievement of the objectives laid down.

The Vision
Our vision is to continue to be an environmentally responsible organisation making
continuous improvements in the management of the environmental impact of our
operations.

We will achieve this through an Integrated Environment Management approach, which

focuses on People, Technology and Facilities, supported by Management Commitment as
the prime driver.

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The Environment Policy
Hindustan Unilever Ltd. (HUL) is committed to meeting the needs of customers and
consumers in an environmentally sound manner, through continuous improvement in
environmental performance in all our activities. Management at all levels, jointly with
employees, is responsible and will be held accountable for company's environmental
performance.

Accordingly, HUL's aims are to:

 Ensure safety of its products and operations for the environment by using standards of
environmental safety, which are scientifically sustainable and commonly acceptable.

 Develop, introduce and maintain environmental management systems across the

company to meet the company standards as well as statutory requirements for
environment. Verify compliance with these standards through regular auditing.

 Assess environmental impact of all its activities and set annual improvement
objectives and targets and review these to ensure that these are being met at the
individual unit and corporate levels.

 Reduce Waste, conserve Energy and explore opportunities for reuse and recycle.

 Involve all employees in the implementation of this Policy and provide appropriate
training. Provide for dissemination of information to employees on environmental
objectives and performance through suitable communication networks.

 Encourage suppliers and co-packers to develop and employ environmentally superior

processes and ingredients and co-operate with other members of the supply chain to
improve overall environmental performance.

 Work in partnership with external bodies and Government agencies to promote

environmental care, increase understanding of environmental issues and disseminate
good practice.
Responsibilities

Corporate
The Board and the Management Committee of HUL is committed to conduct the
company operations in an environmentally sound manner. The Management Committee
will:

 Set mandatory standards and establish environmental improvement objectives and

targets for HUL as a whole and for individual units, and ensure these are included in the
annual operating plans.

 Formally review environment performance of the company once every quarter.

- 28 -
 Review environment performance when visiting units and recognise exemplary
performance.

 Nominate:
- A senior line manager responsible for environmental performance at the individual
HUL site.
- HUL environmental coordinator.

The Management Committee, through the nominated environmental coordinator will:

 Ensure implementation of HUL Policy on environment and compliance with Unilever

and HUL environmental standards and the standards stipulated under relevant national /
local legislation. When believed to be appropriate, apply more stringent criteria than
those required by law.

 Assess environmental impact of HUL operations and establish strategies for sound
environment management and key implementation steps.

 Encourage development of inherently safer and cleaner manufacturing processes to

further raise the standards of environment performance.

 Establish appropriate management systems for environment management and ensure

regular auditing to verify compliance.

 Establish systems for appropriate training in implementation of Environment

Management Systems at work.

 Ensure that all employees are made aware of individual and collective responsibilities
towards environment.

 Arrange for expert advice on all aspects of environment management.

 Participate, wherever possible, with appropriate industry and Government bodies

advising on environmental legislation and interact with national and local authorities
concerned with protection of environment.

- 29 -
Individual Units
The overall responsibility for environment management at each unit will rest with the
Unit Head, who will ensure implementation of HUL Policy on environment at unit level.
Concerned line managers / heads of departments are responsible for environmental
performance at department levels.

In order to fulfill the requirements of the Environment Policy at each site, the Unit Head
will:

 Designate a unit environment coordinator who will be responsible for co-ordinating

environmental activities at unit, collating environmental statistics and providing /
arranging for expert advice.

 Agree with the Management Committee Member responsible for the unit, specific
environmental improvement objectives and targets for the unit and ensure that these are
incorporated in the annual objectives of the concerned managers and officers and are
reviewed periodically.

 Ensure that the unit complies with Unilever and HUL mandatory standards and the
relevant national and state regulations with respect to environment.

 Ensure formal environmental risk assessment to identify associated environmental

aspects and take appropriate steps to control risks at acceptable levels.

 Ensure that all new operations are subjected to a systematic and formal analysis to
assess environmental impact. Findings of such exercises should be implemented prior to
commencement of the activity.

 Manage change in People, Technology and Facilities through a planned approach

based on training, risk assessment, pre-commissioning audits and adherence to design
codes.

 Regularly review environment performance of the unit against set objectives and
targets and strive for continual improvement.

 Sustain a high degree of environmental awareness through regular promotional

campaigns and employee participation through training, safety committees, emergency
drills etc.

- 30 -
 Ensure dissemination of relevant information on environment within the unit and to
outside bodies, and regularly interact with Government authorities concerned for
protection of environment.

 Maintain appropriate emergency procedures consistent with available technologies to

prevent / control environmental incidents.

 Provide appropriate training to all employees

 Ensure periodic audits to verify compliance with environment management systems

and personally carry out sample environment audits to check efficacy of the systems.

 Report environmental statistics to HUL Corporate Safety & Environment Group on a

monthly basis.

Research and Innovation Centres

Since most new products and processes are developed in these Units, certain additional
responsibilities devolve on them to ensure implementation of the Environment Policy of
the company. In addition to the Unit Head's responsibilities outlined above, the heads of
these units will:

 Ensure that a formal and systematic risk assessment exercise is undertaken during the
process/product development stage with specific reference to environmental impact.

 Transfer technology to the pilot plant and main production through a properly
documented process specification which will clearly define environmental impact and
risks associated with processes, products, raw material and finished product handling,
transport and storage.

 Ensure that treatment techniques are developed for any wastes generated as a result of
the new product/process and is incorporated into the process specifications.

- 31 -
Hindustan Unilever Limited considers quality as one of the principal strategic objectives
to guarantee its growth and leadership in the markets in which it operates.

The company is committed to respond creatively and competitively to the changing needs
and aspirations of our consumers through relentless pursuit of technological excellence,
innovation and quality management across our businesses, and offer superior quality
products and services that are appropriate to the various price points in the market as well
as to our commitment to building shareholder value.

The company recognises that its employees are the primary source of success in its
operations and is committed to training and providing them the necessary tools and
techniques as well as empowering them to ensure broad base compliance of this policy in
the organisation at all levels.

The company is committed to fulfill its legal and statutory obligations and international
standards of product safety and hygiene and will not knowingly sell product that is
harmful to consumers or their belongings. It will institute systems and measures to
monitor compliance in order to meet its responsibilities to consumers.

The company will maintain an open communication channel with its consumers and
customers and will carefully monitor the feedback to continuously improve its products
and services and set quality standards to fulfill them.

The company is committed to extend its quality standards to its contract manufacturers,
key suppliers and service providers and by entering into alliances with them, to jointly
improve the quality of its products and services. This policy is applicable to production
from its own facilities as well as to production that is outsourced.

The company will periodically review this quality policy for its effectiveness and quality
policy for its effectiveness and consistency with business objectives.

The company delegates authority and responsibility for dissemination and

implementation of this policy to each Business and Unit Head.

- 32 -
Introduction

Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the
daily needs of consumers and customers. In doing so, the Company is committed to
exhibit the highest standards of corporate behavior towards its consumers, employees, the
societies and the environment in which we operate.

Towards this, the Company recognises its responsibility to ensure safety and protection
of health of its employees, contractors and visitors in all its operating sites, which include
manufacturing, sales and distribution, research laboratories and offices during work and
work related travel.

This Policy document defines the vision, principles, aim, required actions and scope of
the policy application as well as the responsibility for execution.

Our Vision
Our vision is to be an injury free organisation.

Our Mission
We will bring safety on top of mind for all employees and will integrate it with all
business processes. We will realise our Vision through an Integrated Safety Management
approach, which focuses on People, Processes, Systems, Technology and Facilities,
supported by demonstrated leadership and employee commitment at all levels as the
prime drivers for ensuring a safe and healthy work environment.

- 33 -
Safety Principles
HUL's Occupational Safety and Health Policy is based on and supported by the following
eight Principles.

These Principles have the same status as the Company's Code of Business Principles:

 All injuries and occupational illnesses are preventable

 All operational exposures can be safeguarded
 Safety evaluation of all business processes is vital
 Working safely is a condition of employment
 Training all employees to work safely is essential
 Management audits are a must
 Employee involvement is essential
 All deficiencies must be reported and corrected promptly

Note: In order to facilitate operationalisation of the Safety Principles, a separate

document has been prepared, which covers:
a) Safety Principles
b) Success Criteria
c) Illustrative KPI

This document will form the basis for the concerned Line / Organisations in developing
KPI's for their respective functions / sites.

- 34 -
The principal asset of this establishment is the talent pool of more than 250 highly skilled
people, out of which some 80+ are Scientists with PhDs and Post Doctoral experience
from renowned universities around the world. They are responsible for creating value to
business through innovations achieved through scientific rigor and a spirit of creative
inquiry. Many of them have earned high repute outside of our organization, and represent
Unilever in technical committees, consortia of the government, and other international
agencies.

The scholarly work of our scientists regularly features in respected national and
international journals, books, conferences and workshops. Several patent applications and
grants are credited to them on a regular basis. The main facilitating forces in this regard
are sustainability and working in multi-disciplinary teams on consumer-relevant research
projects and in the areas of science and engineering that impact them.

Dr. Shilpa Vora, Principal Research Scientist

Vikas Pawar, Senior Research Associate

R Venkatraghvan, Senior Research Scientist

Jaideep Chatterjee, Principal Research Scientist

Aparna Damle, Research Associate.

Punam Bandyopadhyay, Research Scientist.

Deeleep Rout, Principal Research Scientist

Suresh Jayaraman. Head, Materials Research Group

Suranjan Sircar. Research Associate

Sudipto GhoshDastidar. Principal Research Associate

- 35 -
Lux
Ayush
Lifebuoy
Breeze
Liril
Dove
Hamam
Pears

Rexona
Surf Excel

Rin
Fair & Lovely
Wheel
Pond's

Vaseline
Sunsilk Naturals

Clinic
Pepsodent

Axe Closeup

Rexona

Lakme

- 36 -
Lux stands for the promise of beauty and glamour as one of India's most trusted personal
care brands. Lux continues to be a favorite with generations of users for the experience of
a sensuous and luxurious bath.
Since its launch in India in the year 1929, Lux has offered a range of soaps in different
sensuous colors and world class fragrances. 2003 saw one of the biggest milestones in the
history of Lux. From being just a beauty soap of film stars, Lux recognized the need for a
compelling message about beauty that would resonate with women of today.

Lux is available in four different variants – Exotic flower petals and Jojoba Oil, Almond
Oil and Milk Cream, Fruit Extracts and Honey in Milk Cream and Sandal Saffron in Milk
Cream.

Lifebuoy’s vision is, “Making a billion Indians feel safe and secure by meeting all their
health and hygiene needs”.

True to its vision, the world's largest selling soap, offers a compelling health benefit to
the entire family. Launched in 1895, Lifebuoy, for over 100 years, has been synonymous
with health and value. The honest & hard working soap, with its distinctive perfume and
popular jingle, has carried the Lifebuoy message of health across the length and breadth
of the country.

The relaunch of the soap in 2002, 2004 & again in 2006 have been turning points in its
history. The new mix includes a new formulation and a repositioning to make it more
relevant to both new and existing consumers.

Lifebuoy is now in a superior formulation offering a new health fragrance and a

contemporary shape. The new formulation offers a significantly superior bathing
experience and skin feel. This new mix has registered conclusive and clear preference
among existing and new users.

Apart from Lifebuoy total, it has also strongly built its other core variants like Lifebuoy
deofresh – targeted at freshness, Lifebuoy nature – containing all the goodness of nature
and Lifebuoy care – for sensitive skin.

- 37 -
Lifebuoy also offers specific health benefits through specialised product formats like
Lifebuoy HandWash & Lifebuoy Clearskin, which provides treatment and protection
against acne.

For 28 years, freshness has been clearly identified with one name – Liril

Liril expressions have always set trends whether it is a bathing beauty in a waterfall or
"Oof Yu Maa!" The energy and excitement levels associated with the brand have to be
experienced to be believed with changing times. Liril has donned many avatars;
Presently, Liril Soft Aloe Vera & Lime, Liril Icy Cool and Liril Orange splash are
making waves.
What's next? Wait and Watch! The show has just begun...

Launched in 1934, Hamam has always been a reliable option for consumers over years.

The brand has withstood the test of time and has given the consumers the confidence and
assurance of being a soap that is safe on skin.

Hamam is manufactured in the most modern soap plants world-class quality control
system. Hamam contains polyols, which are known to be good moisturizers. Hamam also
contains Aloe Vera, Tulsi and Neem extracts.

- 38 -
Hamam soap is made from a blend of vegetable oils. The optimum grade of Palm oil and
coconut oil is mixed in the right proportion to give a soap that is lasting, gives lather
which is stable and can effectively remove oil, dirt from the surface of the skin.

Formulation Details

The formulation range contains ingredients that are safe on skin. The formulation has
been toxicologically cleared by, the Safety and Environment Assurance Center, (SEAC)
Unilever which follows very stringent norms for clearance. The perfume used in Hamam
meets all requirements mandated by IFRA (International Fragrance Association) The
formulation satisfies all the requirements of Toilet Soap Grade II as per Bureau of
Industrial Standards of India (IS 2888: 2004)

A pioneer in the Indian detergent powder market, Surf Excel has constantly upgraded
itself over the years, to answer the constantly changing washing needs of the Indian
homemaker. Today Surf Excel offers outstanding stain removal ability on a wide range of
stains. This means that mothers now have the freedom to let their kids experience life
without worrying about stains.

Surf Excel quick wash is powered with a path-breaking technology- it reduces water
consumption and time taken for rinsing by 50%. It is a significant benefit, given the acute
water scarcity in most of India.

Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel Quick Wash and Surf
Excel Automatic. So whatever be the need, Surf Excel hai na.

- 39 -
Launched in 1969, Rin with the power of its thunderous lightning flash has become a
household name synonymous with dazzling white clothes, for millions across the length
and breadth of the country.
Over the years, Rin has constantly evolved to cater to the growing aspirations of the
Indian housewife. Be it with Rin Advanced or its perfumed variant Jasmine Fresh, the
brand guarantee superior cleaning, incomparable white clothes and self-confidence which
comes only from wearing spotless clean clothes. That too, at affordable prices.Recently
Rin re-wrote the rules of branding and marketing by teaming up with the country’s
leading entertainment channel, Star Plus to launch a unique reality show for kids titled –
‘Rin Mera Star Super Star’- a nationwide talent hunt providing a platform for talented
children to showcase their potential to the entire country. The winning contestant won a
scholarship of Rs. 500,000 to help him chase the dream of becoming an artist or to pursue
future education.

Over the years, Rin has won a number of accolades, the most recent being voted as the
Most Preferred Detergent brand in India at the Awaaz Consumer Awards in 2006. The
Awaaz Consumer Awards voice the opinion of 10,000 consumers of 39 product and
service categories across 21 countrywide locations.

- 40 -
Wheel is India's number one detergent brand. Launched in 1987, it cleans effectively with
lesser effort, making a laborious chore like washing light and easy. Moreover, Wheel
does not burn hands or harm clothes like some other detergents, which contain a high
percentage of soda.

Ever since its relaunch in 2001, with the new positioning of 'best clean with less effort',
Wheel has been growing strongly. Research showed that consumers seek a solution to
heavy duty laundry, like bed sheets and curtains. Developing on this insight, wheel
sought to eliminate the trouble of tough dirt or heavy-duty laundry. Mass market
consumers have welcomed the solution, making it the number one.

Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country. Positioned
as the 'Hair Expert', Sunsilk has identified different hair needs and offers the consumer
a shampoo that gives her the desired results.

- 41 -
The benefits are more compelling and relevant since the variants are harmonised in terms
of the product mix - fragrance, colour and ingredients are all well linked to cue the
overall synergy. The range comes in premium packaging and design. The accent is on "It
knows you, and hence knows exactly what your hair needs".

Clinic Plus Health shampoo was launched in India in the year 1987. It is India's largest
selling shampoo, offering the five most important hair health benefits: strengthens weak
hair, prevents hair breakage, softens rough dry hair, shine for thick and healthy hair, and
contains anti-dandruff ingredient.
The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual
shampoo – it not only fights the last dandruff flake, but also adds back lost nutrients to
make hair healthy and beautiful. Clinic All Clear Total is a dandruff solution for
everyday use.

- 42 -
Axe, the deodorant that is considered cool, fashionable and stylish by young men was
launched in India in 1999. Available in more than 60 countries around the world, it is a
world leader in male toiletries.
Axe has a mix that is completely harmonised globally – from its proposition and
communication to the product, as available on the shelf.
Axe is available in five fragrances: Java, Pulse, Dimension, Voodoo and Phoenix. Axe
has become the leading male deodorant brand in India within just one year of its launch.

Rexona was the first Deodorant to be launched in India in 1995.

It is the only deodorant in the Indian market that promises 24 hour protection from Body
Odour.

Rexona has ingredients that combine body odour protection and cosmetic values which
are proven to work in challenging situations.

- 43 -
Ayush was launched in 2002. With Ayush HLL brings to you a range of Ayurvedic
Health Care & Personal Care Products with a superior sensory experience, scientifically
tested and proven functionality and international standards of quality and safety, for a
uniquely pleasurable and holistic Ayurvedic experience.
For the first time, the eternal truths of Ayurveda and the rigours of modern science have
been combined. The Ayurvedic purity of Ayush's formulation is endorsed by Arya
Vaidya Pharmacy, Coimbatore.
The Ayush range comprises shampoos, hair oil, skin cream, soap and nutritional
supplements.

The Ayush Therapy Centres provide personalised service and advice in positive health
and stress relief, aches and pain relief, skin and hair care and weight loss consultation.

- 44 -
Breeze Scent Magic is the soap which fulfills the aspirations of women of rural India.
Breeze has offered them 'beauty at an affordable price', making them look and feel
beautiful.
Breeze comes in 4 exotic fragrances – Rose, Sandal, Lime and Rajnigandha. All this at a
very affordable price for the masses.

- 45 -
Dove soap, which was launched by Unilever in 1957, has been available in India since
1995. It provides a refreshingly real alternative for women who recognise that beauty is
not simply about how you look, it is about how you feel.
The skin's natural pH is slightly acidic 5.5-6. Ordinary soaps tend to be alkaline, with pH
higher than 9. Dove is formulated to be pH neutral (pH between 6.5 and 7.5) and to be
mild on skin. This makes it suitable for all skin types for all seasons. While Dove soap
bar is widely available across the country, Dove Body Wash is available in select outlets.

Globally, Dove has been extended to many other countries. Since the 1980s, for example,
Unilever has launched a moisturising body-wash, deodorants, body lotions, facial
cleansers and shampoos and conditioners, providing a comprehensive range of solutions
to bring out true inner beauty.

- 46 -
Introduced in India in 1902, Pears soap has no equal. It is gentle enough, even for baby's
skin.
Pears is manufactured like any other soap, but unlike in conventional soaps, the glycerine
is retained within the soap. That is the cause if its unique transparency. After
manufacturing, the soap is mellowed under controlled conditions over weeks. At the end
of this maturing process, it is individually polished and packed in cartons.

Today Pears is available in three variants - the traditional amber variant, a green variant
for oil control and a blue variant for germ protection.

- 47 -
A woman's passion for beauty is universal and catering to this strong need is Fair &
Lovely. Based on a revolutionary breakthrough in skin lightening technology, Fair &
Lovely was launched in 1978.
The Hindustan Lever Research Centre (it is among the largest research establishments in
India's private sector, including pharmaceutical companies, with facilities in Mumbai and
Bangalore) deployed technology, based on pioneering research in the science of skin
lightening to develop Fair & Lovely. The formulation is patented. Its formulation acts
safely and gently with the natural renewal process of the skin, making complexion fairer
over a period of six weeks. Fair & Lovely is formulated with optimum levels of UV
sunscreens and Niacinamide that is known to control dispersion of melanin in the skin. It
is a patented and proprietary formulation, which has been in the market for 25 years.
Niacinamide (Vitamin B3) is a water-soluble vitamin and is widely distributed in cereals,
fruits and vegetables - and its use in cosmetic formulations has been known for various
end benefits. The UV components of the formulation are scientifically chosen and used at
optimum levels to provide wide spectrum protection against UV rays of the sun.
Specifically, this patented formulation offers a high UVA protection, which is more
relevant to Asian skin than plain SPF protection creams sold in the West. All the active
ingredients in the Fair & Lovely formulation function synergistically to lighten skin
colour through a process that is natural, reversible and totally safe.

- 48 -
Pond's has been synonymous with skin care in India since 1947.
The impressive track record of Pond's began when Theron T Pond, a pharmacist from
Utica New York, introduced 'Pond's Golden Treasure' in 1846, a witch-hazel based
wonder product. In 1914, Pond's Cold Cream and Vanishing Cream marked the brand's
evolution to a beauty icon. In 1955 Pond's Extract Company merged with Chesebrough
Manufacturing and in 1987 Unilever purchased Chesebrough-Pond's. By this time the
Pond's brand had built up a powerful international presence.

From one man in a tiny home-made laboratory, to today's state of the art R&D facilities
led from Bangkok, Mumbai, New York and Tokyo, the Pond's promise has remained the
same across 58 countries - to deliver products that make a real difference to women's skin
and the way they live their lives.

- 49 -
Vaseline is a trusted brand worldwide associated with daily skin care and healthy skin for
the entire family. Vaseline has been keeping skin healthy since 1870.
The Vaseline Philosophy:

The need for Vaseline is based on real skin facts. We believe our skin is amazing. It
protects us, heals itself, connects us to the world, transmits emotions. And this amazing
skin needs to be looked after. We believe nobody knows skin, and how to keep it at its
healthy best, better than Vaseline. Which is why we make products that maintain our skin
condition at its best and enhance its natural health.

Vaseline Petroleum Jelly I.P. :

Vaseline Petroleum Jelly is a mixture of Mineral oils, Paraffin and microcrystalline

waxes, that when blended together, create something remarkable- it literally melts into
your body, protecting the skin from within.

Vaseline petroleum Jelly serves two functions. First it helps keep the outside world out –
it protects skin from effects of weather and exposure. Second it acts like a sealant to keep
the inside world in, thereby acting as a barrier to the natural water loss from our skin. So
Skin that is dry and chapped is protected from drying elements, enabling skin softening
moisture to build up naturally from inside the skin itself.

Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial agent to
address the consumer need of checking germs even hours after brushing.
Pepsodent packs included a Germ Indicator in February-May 2002, which allowed
consumers to see the efficacy in fighting germs for themselves. As a follow-up, in

- 50 -
October 2002, Pepsodent offered Dental Insurance to all its consumers to demonstrate the
confidence the company has in the technical superiority of the product. Pepsodent
connects directly with kids and their parents. Pepsodent has always worked in the
direction of an overall awareness of dental health. The relaunch campaign in October
2003 widened the context to "sweet and sticky" food and leveraged the truth that children
do not rinse their mouths every time they eat, demonstrating that this makes their teeth
vulnerable to germ attack.
Pepsodent's most recent campaign aims at educating consumers on the need for germ
protection through the night.

Pepsodent also includes a range of toothbrushes.

Closeup is the original youth brand of India.

The first brand targeting youth in the oral care market, with an edgy and youthful image
which stays relevant till date. Ever since its launch in 1975, Closeup has broken every
rule in the book on how toothpastes should behave!
Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste
segment ever since.
In 2004, Closeup was re-launched with a bang. And this time it was packed with the
power of Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride, Mouthwash
and Micro whiteners, the perfect combination of ingredients for fresher breath and

- 51 -
stronger, whiter teeth. Closeup became the first Gel toothpaste with Fluoride in the Indian
Market!
The brand umbrella also includes Closeup Lemon Mint, gel toothpaste with the whitening
benefits of lemon.
The latest entry in the Closeup stable is Closeup Milk Calcium – revolutionary new
toothpaste with the goodness of milk calcium in an industry-first core-in-sheath format,
with white milk calcium nutrient on the inside and a refreshing blue gel on the outside.

Half a century ago, as India took her steps into freedom, Lakme, India's first beauty brand
was born. At a time when the beauty industry in India was at a nascent stage, Lakme
tapped into what would grow to be amongst the leading, high consumer interest segments
in the Indian Industry - that of skincare and cosmetic products. Armed with a potent
combination of foresight, research and constant innovation, Lakme has grown to be the
market leader in the cosmetics industry.

Lakme today has grown to have a wide variety of products and services that cover all
facets of beauty care, and arm the consumer with products to pamper herself from head to
toe. These include products for the lips, nails, eyes, face and skin, and services like the
Lakme Beauty Salons.

- 52 -
Brooke Bond

Lipton

Kissan

Annapurna

Knorr

Brooke Bond Bru

- 53 -
Kwality Wall's

In a nation of tea drinkers, the one brand that signifies tea in India is Brooke Bond – ever
since the launch of Brooke Bond Red Label in 1903. It is India's single largest tea brand.
It has touched millions of consumers with a range of tea offerings appealing to the
diversity of their tastes.It has the strongest foothold amongst any of the tea brands in
India and touches the homes of over 500 million consumers.

To de-commoditise the tea category, Brooke Bond is focusing its efforts on building four
powerful sub-brands, namely, Brooke Bond Taj Mahal, Brooke Bond Red Label, Brooke
Bond Taaza & Brooke Bond 3 Roses. The range offers a full variety of propositions as
well as price points to appeal to various sections.

- 54 -
Lipton, the world's largest selling tea brand, is an iconic brand for the youth through both
its hot and cold formats.
Lipton Yellow Label is Unilever's global tea brand and sells in many countries across the
world, with tea bags, packet tea and Lipton Ice Tea. Lipton Ice Tea, the international ice
tea drink, is available in India in Lemon and Peach flavours. It is available in 250 ml
glass bottles, 200 ml vending cups, 245 ml cans and one litre tetra packs.

The company has created an alliance with Pepsi to market, sell and distribute Lipton Ice
Tea. The company itself has over 15,000 vending machines. The alliance will further
strengthen the out-of-home consumption of tea and coffee.

- 55 -
Acquired by Hindustan Lever Limited in 1994, the Kissan category consists of
'deliciously wholesome products for kids to grow up.'

The Kissan range consists of ketchup and other sauces, jams, squashes and ready-to-drink
products. For mothers and children, Kissan is today one of the most trusted brands in the
country.

Kissan continues to be a pioneer in the categories that it operates in.

- 56 -
Annapurna brand, first introduced in 1997, has been the provider of wholesome nutrition
to millions of Indians. The brand currently operates in two of the largest, almost
universally consumed, foods categories of the country – Salt & Atta (wheat flour).

Iodine deficiency is a serious health issue in India. Annapurna salt has played a big role
towards reduction of iodine deficiency by providing its consumers with the Right Level
of Iodine as prescribed by the Indian government and international standards. Annapurna
salt was the first in the world to be endorsed by The International Council for Control of
Iodine Deficiency Disorders (ICCIDD). Annapurna has also taken initiatives to educate
consumers about the benefits of iodine and its effect on the mental development of
growing children.

Annapurna Atta was launched nationally in 1998, to help the Indian homemaker provide
wholesome tasty nutrition to her family. It is made with modern technology that helps
Annapurna atta absorb more water than ordinary atta when kneaded, resulting in softer
chapatis.

- 57 -
Knorr is Unilever’s largest brand worldwide and stands for chefmanship and recipe
expertise . The core of the brand consists of innovation and partnering with the consumer
in the creation of great dishes . The brand is present across soups , bouillons , cubitos ,
meal kits and pastas around the world.

In India , the brand is so far present only in soups .The soup market in India is small but
rapidly growing , and Knorr enjoys a 70% market share . Knorr soups comprises of a 4
serve pack and is available across the country. The range of soups comprises various
types of cuisines – Chinese , continental , and even Thai . All the soups can be prepared
in a few minutes and the consumer can enhance the taste by adding vegetables or
garnishings as per her choice .

There are 14 exciting flavours - Thick Tomato, Tangy Tomato, Chinese Veg Tomato,
Sweet Corn Veg, Hot and Sour Veg, Creamy Mushroom, Sweet and Sour Noodle, Thai
Lemony Noodle, Mixed Veg, Sweet Corn Chicken, Hot and Sour chicken, Chicken
Delite, Chicken noodle and Chinese Chicken & Mushroom.

In addition , the brand also has a two serve pack in the following flavours – Thick
Tomato , Tangy Tomato , Sweet Corn Veg , Sweet and sour noodle , Thai lemony noodle
, Hot and Sour Chicken and chicken noodle.

Bru, launched in 1969, created history in the first year of launch by growing to a record
market share of 21%. Ever since, it has grown from strength to strength.

Bru has been instrumental in virtually creating the entire Instant Coffee category as it
exists today. It has been at the forefront of most innovations in the Instant Coffee

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category - whether in coffee-chicory blends, refill packaging, vending operations, or
more recently the Low-unit-price packs.
The Bru franchise also includes the Bru Roast & Ground, India's most popular Roast &
Ground Coffee brand, and Bru Malabar Roast & Ground which is available in select
geographies.

Kwality Wall's, launched in 1995, is the company's master brand for ice cream. Kwality
Wall's has combined state-of-the art technical know-how of Unilever - the global leader
in ice cream - with a deep insight of the Indian market, to deliver a range of superior
quality products under its international brands.

Key launches include Cornetto, Feast, Viennetta, and a range of Sundaes, and also
exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone. Kwality
Wall's ensures that while each of its offerings is unique in taste and flavour, they are also
accessible to more consumers through breakthrough cost reengineering and value
delivery.

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Join Hindustan Unilever Network as an Entrepreneur

If your dream is to become a successful entrepreneur, join Hindustan Unilever Network.

Started in 2003, Hindustan Unilever Network (HLN) is HUL's Direct Selling arm. It
already has about 3.5 lakh consultants - all independent entrepreneurs, trained and guided
by HLN's expert managers and trainers.

Among them, there are over 10 consultants who are earning at over a rate of Rs.1 million
per annum. Over 25 consultants earn over Rs.50,000 per month. What is encouraging is
that they all started their business with earnings of less than Rs.500 per month!

HLN offers you to build a business with different categories of Home & Personal Care

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(HPC) and Food products. They are all essential household needs. And they are all
exclusive to HLN, specifically developed for the Direct Selling channel, and not available
in the retail channel.

HLN has already spread to 1500 towns and cities, backed by 42 offices and over 250
service centres across the country.

HLN's vision is to be amongst the top 2 players in the Direct Selling Channel by 2008
with a base of 1 million consultants.

What Makes HLN's Promise Unique And Competitive

• Reputation of Hindustan Unilever

• HLN requires one of the lowest investments for entry (Rs.2450 only to register as a
consultant)
• A richly rewarding Compensation (earning opportunity) Plan providing 7 types of
earning backed by a powerful business development system
• Widest reach amongst Direct Selling companies in India (over 250 servicing points )
• Widest range of top quality Home Care, Personal Care and Food products
• Highly affordable prices
• Focussed training system and tools to aid self development

Why HUL?
No one knows India and Indian consumers better than HUL. The company has access to
both global and local research, technology and development teams. HLN is fully
supported by Hindustan Unilever's nation-wide manufacturing and distribution support
system. Finally, at HLN you have access to Hindustan Unilever's world-famous
management education and business training.

HUL Exports

Today, HUL is one of India’s Largest exporters of branded Fast Moving Consumer
Goods. It has been recognized by the Government of India as a Golden Super Star
Trading House.

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Over time HUL has developed into a viable & competitive sourcing base for Unilever
world wide in Home and Personal Care & Foods & Beverages category of products. HUL
is also a global marketing arm for select licensed Unilever brands and also works on
building categories with core country advantage such as branded basmati rice.

HUL Exports offers high level of service with flexibility and responsiveness thorough out
the supply chain. It has a dedicated organization structure to support this endeavour and
this has helped in growth of these businesses in particular. Intrinsic cost competitiveness
in the end to end Supply chain with appropriate technology and competitive capital
investment operations while delivering best in class quality enables HUL to position itself
as a key sourcing hub for Unilever and also become a preferred partner for Global
customers in categories we operate.

HUL’s key focus in the exports business is on two broad categories. It is a sourcing base
for Unilever brands in Home & Personal Care (HPC) and Food and Beverages (F&B) for
supplies to other Unilever companies. It also focuses on becoming a preferred supplier to
both non-Unilever and Unilever clients in three categories in which India, as a country,
has competitive advantage – Branded Rice, Marine Products and Castor and its
Derivatives . HUL enjoys international recognition within Unilever and outside for its
quality, reliability and speed of customer service.

HUL's Exports geography comprises, at present, countries in Europe, Asia, Middle East,
Africa, Australia, North America

A brief on HUL's Exports portfolio

HPC:
The categories under HPC include products in Skin care, Oral care, Pears ,Personal Wash
& Lakme range.

- Skin Portfolio includes Mass & Masstige Skin (Cream & lotions under Fair & Lovely
and Dove brands), Shampoos and Conditioners (under Sunsilk brands), Vaseline & Talc
(under Ponds brands). In the past the focus market was in Middle East and Asia, which is
now slowing changing with current exports to European countries and robust plans to
source different products to US in the near future.

- Oral Care consists of Tooth Paste and Tooth Brush (under Pepsodent, Close-up,
Mentadant and Signal brands). The exports are to Asian and European countries.

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- Pears Category consists of Bars, Hand Wash, Body Wash and Shower Gel. Pears is
being sold globally including to North America / UK to the GCC / African countries
extending up to Singapore and Australia. While the bar remains the most popular
product, the brand has now extended to hand wash, shower gel, body wash and face
wash. Currently Pears is celebrating its 200 year anniversary which shows the rich
heritage and the strong brand equity it enjoys over generations.

- Personal wash category predominantly consists of Lux, Fair & Lovely Soap, Lifebuoy
Hand wash

- Lakme Products are mainly exported to the countries with Indian Ethnic population or
to geographies where the brand enjoys strong equity. The markets include Nepal,
Bangladesh, United Kingdom & Maldives.
F&B:

The categories under F&B include products in Tea, Coffee & Processed Foods range.

- Tea Category Includes: Tea Bags (includes Tea Bags, Flavored Tea Bags and Square
Tea Bags), Instant Tea, Bulk Tea & Packet Tea. The branded packet tea, and instant tea
are for Unilever's ready-to-drink tea business. The branded teas are Brooke Bond, Brooke
Bond Red label, Brooke Bond Taj Mahal, Lipton, Lipton Yellow Label, Lipton Green
Label, Lipton Brisk and Lipton 3-in-1 premix.

- Coffee Category consists of Instant coffee & special coffee Beans (under Bon and Bru
brands). The focus market for Bon is CIS markets while Bru is mainly sold to Ethnic
markets / Indian diaspora world-wide. Both Bon and Bru straddle the entire gamut of
formats comprising of spray dried coffee, granulated, freeze dried and pre mixes.

- Processed Foods categories include Fruit Spreads / Jams, Soup Powders, Salt, Wheat
Flour, Tomato Ketchup and Custard Powder. The branded processed food items consists
of Kissan, Knorr, Annapurna, Captain Cook, Brown & Polson brands.
Marine Products:
HUL offers a comprehensive portfolio, ranging from Surimi, Crabsticks to Shrimps and
several value-added products. Among its customers is Icelandic, the world's third largest
seafood company. In addition, HUL has also become a part of Unilever's supply chain in
seafoods for Europe too. HUL's Marine Products brands are Ocean Diamond, Ocean
Excellence, Shogun, Hima, Gold Seal, Tara and Prima.

Rice:

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The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice meals. The
brands are Gold Seal, Indus Valley, Rozana and Annapurna.

Castor:

The products are Castor Oil, Castor based products, like hydrogenated castor oil, 12 -
Hydroxy Stearic Acid, Ricinoleic Acid (used in grease and lubricant industry, paints and
surface coatings, cosmetics, emulsifiers), and Speciality Castor Oils (USP grade, BP
grade, DAB 10) etc used in pharmaceutical preparations. HUL's Castor brand is Topsol.

Today, Exports is a significant business in HUL, accounting for about 11% of the
company's turnover. HUL believes that its competitive advantages encompasses the
entire value chain of flexibility, quality, speed, service, creating capability, logistics and
documentation management, forex management, IT based customer initiatives that
support on line visibility of supplies, process competitiveness and economies of scale
both at the company and country level, hold it in good stead. HUL is poised to be a
partner of choice for sourcing by Unilever. Going forward, there are robust growth plans
based on the projects in pipeline for manufacturing of various products in India.

ENABLERS

Pureit - The world's most advanced water purifier

Hindustan Unilever Limited has launched Pureit, the most advanced in-home water
purifier in the world.

It is the only purifier that gives you water that is ‘as safe as boiled water' without boiling,
and without needing electricity or continuous tap water supply. This is why it is the most
advanced inhome water purifier in the world. Pureit gives water that is free from harmful
viruses, bacteria and parasites because it has a Pureit Germkill Battery™ that is a

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combination of unique technological breakthroughs. Therefore, it provides 100%
protection from all water related diseases like jaundice, diarrhoea, typhoid and cholera.
Pureit also removes cancer causing pesticides that may be present in drinking water.
Pureit meets the germkill criteria of the toughest regulatory agency in the USA, the
Environmental Protection Agency (EPA), for protection against harmful viruses, bacteria
and parasites, and getting microbiologically safe drinking water.

This patented technological breakthrough has been and guaranteed by HUL. A team of
over 100 Indian and international experts from HUL and Unilever Research Centres have
devoted over five years to develop this purifier. The performance of Pureit has also been
tested by leading scientific and medical institutions in India and abroad.

Pureit comes at a one-time cost of just Rs.1600. The replacement of the Germkill Battery
Kit ™ is priced at Rs.300, and lasts for 1500 litres of water typically. This means
consumers will get five litres water that is as safe as boiled water for just one rupee (just
20 paise per litre). Therefore Pureit provides water that is as safe as boiled water at an
affordable price to the common man.This is a big health boon for our country given the
wide prevalence of waterborne diseases. Government statistics show that every fortnight
nineteen percent of all children below the age of three years suffer diarrhoeal diseases,
alongside countless other episodes of major water borne illnesses like jaundice, typhoid,
and cholera. Pureit provides water that is ‘as safe as boiled' water through a combination
of unique technologies:

1. A unique Microfibre Mesh™ that removes visible dirt

2. A unique Compact Carbon Trap™ that removes the remaining dirt, parasites and
even pesticides
3. A Germkill Processor™, whose stored germkill power targets and kills all
harmful viruses and bacteria
4. A unique Polisher™ that gives clear, odourless and good tasting water
5. A Germkill Battery Life Indicator™ that lets consumers know when the germkill
power of the battery kit is over and needs to be replaced

Pureit has been designed not only to give guaranteed germkill performance, but it also
improves the clarity of drinking water. It makes the water odourless, so that there is no
residual smell of chlorine. And finally, it gives good tasting water.

Research shows that most consumers currently boil water to make it safe for drinking.
Pureit now eliminates this need to boil drinking water. As a result, consumers will have
significant savings in the cost of cooking gas every month. Further, consumers will no
longer have to worry about the hassles of boiling water, and then cooling and straining it.

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Hindustan Unilever's mission is to meet everyday needs for nutrition, hygiene, and
personal care, with brands that help people feel good, look good and get more out of life.
HUL's research & development base, one of the largest in Indian industry, helps achieve
this mission, with novel products and new processes. The company has over 380 patents,
demonstrating its leading edge in consumer-relevant R&D.

The Hindustan Unilever Research Centre (HLRC), with facilities in Mumbai and
Bangalore, and global technology centres in India have over 200 highly qualified
scientists and technologists, many with post-doctoral experience acquired in the US and
Europe. Set up in 1958, HLRC's aim is to develop new products and processes,
improving benefits and quality of existing products, and optimal use of resources Major
innovations have taken place, down the decades, in every category in which HUL is
present. From Home Care to Personal care, Beverages to Foods.
Better cleaning, lesser water consumption
Consider for example, HUL's development of a water-saving technology for its
detergents. One of the most severe problems that India faces today is shortage of water.
Water scarcity affects one in every three Indians. In a typical Indian home, at least 20%
of the water consumed goes behind washing of clothes. HUL decided that it would be of
immense benefit to an Indian household, if a technology could be developed, which
would help reduce water consumed in washing of clothes. HUL's scientists have
innovated a path-breaking technology - it reduces water consumption and time taken for
rinsing by 50%. The technology has already been introduced.

World's most advanced water purifier

People in cities and towns spend enormous amounts, either in fuel or devices, to ensure
safe drinking water. HUL's scientists have developed a breakthrough device, called
"Pureit", which purifies water as safe as boiled water, providing 100% protection from all
water-borne diseases; it also removes pesticides that may be present in drinking water. Its
operation does not require electricity, running tap water and plumbing or expensive
maintenance. It thus provides water at a cost of just Re.1 for every six litres - or less than
20 paise a litre.

Iodine In Salt - the vital ingredient

Iodine, it is well-known, is important for the mental development of young children.

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Iodised salt is a well-accepted mode of ensuring appropriate iodine intake. Yet Iodine
added to salt is lost in transport, storage as well as in the process of cooking. HUL
scientists have developed a patented breakthrough technology stabilise iodine in salt,
following work on the stability of iodine under Indian conditions of storage and cooking.
The technology has made it possible to actually realise the purpose of iodised salt - that
people get appropriate iodine intake through the food they eat.

Technology of skin lightening

Research in the biology of skin pigmentation has led to the formulation of a product like
Fair & Lovely Skin Cream and Lotion. The product has been periodically updated
through new patented actives. It has now become a global success through exports to
over 30 countries. The product is equally used by the local population of these countries,
apart from those of Indian origin.

HUL has equally developed new processes.

In-house machine development

The company has the capability to design and manufacture machines in-house. This
enables the company to set up plants at half the cost of others. Such technological
developments have also led to significant improvement in productivity.

Energy conservation
In the past, one of the most significant breakthroughs of HUL's research initiative has
been the development of a technology to use non-conventional forest seed oils for soap-
making which, since the 1970s, has helped save around $1.2 billion in foreign exchange.
HUL had received the Government of India's prestigious award for import substitution.
Development of Structurant Technology for soap manufacturing also helped save costly
conventional oils without any compromise on product performance and quality. The
latest technology to produce Distilled Fatty Acid for soap making and the resultant plant
capacity expansion has drastically brought down specific energy consumption while
improving distillation yields. The evolution of continuous soap processing technology
has also reduced energy consumption.

HUL believes that technology is critical to delight consumers. Creative application of

technology has made Hindustan Unilever successful in launching products and services,
which raise the quality of life.

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80 factories, across India

The year was 1923. Lord Leverhulme, the legendary founder of Lever Brothers, was
visiting India. The nationalist sentiment in India was for locally manufactured products.
Lord Leverhulme, who believed that what is good for a country is equally good for the
company, responded to that aspiration because he too shared that dream.

His dream ultimately was realised in 1934. In September 1934, after more than a decade
of discussions in London and in India, a Lever factory was allowed to sprout on the land
that had been reclaimed by the Bombay Port Trust at Sewri. From here, a month later
rolled out the first cake of Sunlight soap to be manufactured in India. The same year,
Lever Brothers took over the Garden Reach Factory in Kolkata.

These two factories were the first in a manufacturing base, which today literally dots the
length and breadth of India. From Assam to Gujarat, from Uttaranchal to Kerala.

Hindustan Unilever's diverse product range is today manufactured in about 80 factories.

In addition, the company outsources from 150 other units. The operations involve 2,000

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suppliers and associates.

Developing backward areas

Several HUL factories are situated backward areas. The company has consciously
responded to the national policy of development of backward areas by setting up
manufacturing units in these places, which provide several direct and indirect
employment opportunities for these areas, and leads to general economic development of
these regions through industrialisation. In fact, all major investments of HUL, in recent
years, have been either in A-Category backward areas or No-Industry Districts. These
include factories in Khamgaon and Yavatmal (Maharashtra), Chhindwara (Madhya
Pradesh), Orai, Sumerpur and Khalilabad (Uttar Pradesh), Haldia (West Bengal), Silvassa
(Dadra & Nagar Haveli), Pondicherry, Goa, Doom Dooma (Assam), Haridwar
(Uttaranchal) and Barotiwala (Himachal Pradesh). Since 2001 itself, HUL has set up nine
new factories in backward areas.

Equally, HUL has an enviable track record in taking over sick enterprises, in response to
requests from Government, and converting them into viable operations. The company's
units at Mangalore and Rajpura all bear testimony to this achievement. In the process,
HUL has saved precious jobs and developed local economies.

HUL's manufacturing facilities, like the Khamgaon soap plant and the Sumerpur
detergent bar unit, are recognised as among the best in the Unilever world.

HUL has adopted Total Productive Maintenance (TPM) for achieving manufacturing
excellence since 1994. As on date, TPM is in different stages of implementation in 28
factories. Four HUL factories have already received the TPM Consistency Award, and 14
factories have been awarded with the TPM Excellence Award.

How do you ensure that Mr. Ramesh in Kanyakumari gets his Lifebuoy soap and Mrs.
Kulkarni in Jammu gets to know how Bru coffee tastes even before she has bought it?
Well, you need to have a cutting edge distribution network in place.

Hindustan Unilever's distribution network is recognised as one of its key strengths. Its

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 focus is not only to enable easy access to our brands, but also to touch consumers with a
three-way convergence - of product availability, brand communication, and higher levels
of brand experience.

HUL's products, manufactured across the country, are distributed through a network of
about 7,000 redistribution stockists covering about one million retail outlets. The
distribution network directly covers the entire urban population.
The general trade comprises grocery stores, chemists, wholesale, kiosks and general
stores. Hindustan Unilever services each with a tailor-made mix of services. The
emphasis is equally on using stores for direct contact with consumers, as much as is
possible through in-store facilitators.
At the supermarkets
Self-service stores and supermarkets are fast emerging in metros and large towns. To
service modern retailing outlets in the metros, HUL has set up a full-scale sales
organisation, exclusively for this channel. The business system delivers excellent
customer service, while driving growth for the company and the store. At the same time,
innovative marketing initiatives are taken to provide consumers with experience of our
brands at the store itself through product tests and in-store sampling.

In the villages
HUL has also revamped its sales organisation in the rural markets to fully meet the
emerging needs and increased purchasing power of the rural population. The company
has brought all markets with populations of below 50,000 under one rural sales
organisation. The team comprises an exclusive sales force and exclusive redistribution
stockists, under the charge of dedicated managers. The team focuses on building superior
availability, while enabling brand building in the deepest interiors. HUL's distribution
network in rural India already directly covers about 50,000 villages, reaching about 250
million consumers, through about 6000 sub-stockists.

Harnessing Information Technology

An IT-powered system has been implemented to supply stocks to redistribution stockists
on a continuous replenishment basis. The objective is to catalyse HUL's growth by
ensuring that the right product is available at the right place in right quantities, in the
most cost-effective manner. For this, stockists have been connected with the company
through an Internet-based network, called RSNet, for online interaction on orders,
despatches, information sharing and monitoring. RS Net covers about 80% of the
company's turnover. Today, the sales system gets to know every day what HUL stockists
have sold to almost a million outlets across the country. RS Net is part of Project Leap,
HUL's end-to-end supply chain, which also includes a back-end system connecting
suppliers, all company sites and stretching right upto stockists.

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Pioneering New Channels
Hindustan Unilever is simultaneously creating new channels, designed on the same
principle of holistic contact with consumers.
Project Shakti, HUL's partnership with Self Help Groups of rural women, is becoming
an extended arm of the company's operation in rural hinterlands. Started in 2001, Project
Shakti has already been extended to about 50,000 villages in 12 states - Andhra Pradesh,
Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, Uttar Pradesh, Orissa,
Punjab, Rajasthan, Maharashtra and West Bengal. The respective state governments and
several NGOs are actively involved in the initiative. The SHGs have chosen to partner
with HUL as a business venture, armed with training from HUL and support from
government agencies concerned and NGOs.

Hindustan Unilever Network (HUN) is the company's arm in the Direct Selling
channel, one of the fastest growing in India today. It already has about 3.5 lakh
consultants - all independent entrepreneurs, trained and guided by HLN's expert
managers. HLN has already spread to over 1500 towns and cities, covering 80% of the
urban population, backed by 42 offices and 240 service centres across the country. It
presents a range of customised offerings in Home & Personal Care and Foods.

Out-of-Home consumption of products and services is a growing opportunity in India, as

elsewhere in the world. Hindustan Unilever is already the largest player in the hot
beverages out-of-home segment, with over 15000 tea and coffee vending points. The
company is expanding the network aggressively, in the education, entertainment, leisure
and travel segments. HUL's allaince with Pepsi will significantly strengthen this channel.

Health & Beauty Services are Hindustan Unilever's simultaneous foray to meet the
increasing consumer need for such products and services. Lakme Salons provide
specialised beauty services and solutions, under the recognised authority of the Lakme
brand. The Ayush Therapy Centres provide easy access to authentic Ayurvedic
treatments and products Hindustan Unilever, which once pioneered distribution in India,
is today reinventing distribution - creating new channels, and redefining the way current
channels are serviced. In the process it is converging product availability, with brand
communication and brand experience.

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